How to address Convergence: the
European Commission’s proposals for a
new regulatory framework
Development Symposium for Regulators, 2022 November 2000, Geneva
Workshop A: The Impact of Convergence on Regulators, 22
November
Alison Birkett, DG INFSO, European Commission
The need to overhaul the
1998 telecoms framework
• Adapt the framework to technology-driven market
changes (convergence, Internet, e-commerce, etc.)
• Amplify the benefits of competition for users (choice,
prices, quality)
Convergence removes
sector boundaries
Service
Voice
telephony
Data
The Internet
Network
Terminal
Fixed
Wireless
Mobile
Fixed
Satellite Cable
Broadcasting
Cable
Satellite
Telecoms
Terrestrial
The nature of the new framework
• Ex-ante regs to be rolled back as competition develops
• Regulate only where there is market failure
The new package
Authorisation Directive
Framework
Directive
(Art. 95)
Access & Interconnection
Directive
Liberalisation
Directive
(Art. 86)
Unbundled local loop
Regulation
Users’ Rights Directive
Data Protection Directive
Spectrum
Decision
(Art. 95)
Simplification, clarification
Services Directive (90/388/EEC)
extended to: Satellite (94/46/EC)
Cable (95/51/EC)
Mobile (96/2/EC)
Full competition (96/19/EC)
Cable ownership (1999/64/EC)
ONP Framework Directive
(90/387/EEC amended by 97/51/EC)
Licensing Directive (97/13/EC)
GSM Directive (87/372/EEC)
ERMES Directive (90/544/EC)
DECT Directive (91/287/EEC)
S-PCS Decision (97/710/EC)
UMTS Decision (99/128/EC)
European Emergency Number Decision (91/396/EC)
International Access Code Decision (92/264/EEC)
ONP leased lines Directive
(92/44/EEC amended by 97/51/EC)
TV standards Directive (95/47/EC)
Interconnection Directive
(97/33/ EC amended by 98/61/EC)
Voice telephony Directive (98/10/EC)
Telecoms data protection Directive (97/66/EC)
Liberalisation Directive
Framework Directive
Authorisation Directive
Access & Interconnection
Directive
Unbundled local loop
Regulation
Universal service Directive
Data protection Directive
Framework directive: horizontal
tasks and common provisions
• Scope and definitions
• electronic communications services, networks and
associated facilities
• National Regulatory Authorities (NRAs) - rights and
obligations
• independence; right of appeal; transparency mechanism
• Horizontal functions of NRAs
• objectives and principles; radio spectrum; numbering; rights
of way & facility sharing; accounting separation
• Common provisions
• SMP; market analysis; harmonisation procedures;
Communications Committee; high level communications
group (HLCG)
SIGNIFICANT MARKET POWER ‘NEW SMP’
An NRA would designate an undertaking as
having SMP where it was:
• DOMINANT (singly, jointly, or by leveraging dominance into a
related market where it had a leading position) AND
• EITHER INCUMBENT (i.e. having benefited from
special/exclusive rights) and existence of barriers
to entry;
• OR VERTICALLY-INTEGRATED and owning facilities to
which its downstream competitors necessarily require access to
compete.
Common provisions: procedures for
ex ante regulation
Commission Decision
identifies candidate
markets for regulation
Yes
NRA analysis: effective
competition?
(on basis of Commission
Guidelines)
Issue draft decision removing existing
obligations, or not
imposing new
Identify operator(s) normally SMP
No
Issue draft decision maintaining existing
obligations, or
imposing new
Yes
No
NRAs to consult at
national level & notify
other NRAs
NRAs to notify final
draft to Commission
Commission to
scrutinise - power to
amend or block.
Access and Interconnection
Directive
• To establish common rules for the wholesale market
between suppliers of networks and services
• To provide continuity with Interconnection Directive and
TV Standards Directive, while providing for existing
obligations to be modified or withdrawn
• To allow NRAs to deal with new access issues, based on
analysis of the market
ACCESS PRINCIPLES
• Reliance on competition and commercial negotiations
• Regulatory intervention only when market analysis
reveals insufficient competition (new SMP test)
• Range of regulatory obligations to be limited
(transparency, non-discrimination, accounting separation,
access, price regulation)
• Type of obligation to be proportionate to the problem
AUTHORISATION DIRECTIVE
• All electronic
communications services and
networks covered by a general
authorisation with notification procedure
only
• Individual rights of usage only for radio
frequencies and numbers
• Declarations of rights under general
authorisation if necessary
Directive on Universal Service and
Users’ Rights
• Universal Service Obligations
• Scope clarified to include Internet dial-up
• Special facilities for consumers to monitor and control expenditure
• Special measures for disabled users and users with special social
needs
• Adds review procedure for re-defining scope
• User Rights
• Retail Price regulation
• General Rights
• Contracts
• Reinforces monitoring of Quality of Service
• Extends number portability to mobile networks
• Other Mandatory Services/Leased Lines
13
Directive on Data Protection
An Amended Directive
• Data protection regardless of technology
• Extends privacy safeguards for the use of location data
to mobile users with exception for emergencies
• Right to determine whether or not to be listed in a
public directory, and how
• Prohibits unsolicited emails (so-called ‘spam’) except
where subscribers have ‘opted in’